Tag: IRS Hardship Review

An IRS hardship review is a periodic evaluation conducted by the IRS to determine if a taxpayer in Currently Not Collectible (CNC) status due to financial hardship can now afford to pay their tax debt. The IRS typically conducts these reviews every one to two years or when they receive information suggesting your financial situation has improved, such as income increases or new asset acquisitions. During the review, you’ll need to provide updated financial documentation including income statements, bank records, and expense details. If the IRS determines you can now make payments, your CNC status may be revoked and collection activities resume. Staying compliant with all tax filing requirements and responding promptly to review requests is essential to maintaining hardship status.